Excel Formulas and Functions For Dummies. Bluttman Ken

closing price for the Standard & Poor’s 500 for the month of September 2004. A possible analysis is to see how many times the closing price was higher than the average for the month. Therefore, you need to calculate the average before you can compare any single price. Embed the AVERAGE function inside another function to calculate the average first.

       Figure 1-26: Nesting functions.

       When a function is nested inside another, the inner function is calculated first. Then that result is used as an argument for the outer function.

      The COUNTIF function counts the number of cells in a range that meet a condition. The condition in this case is that any single value in the range is greater than (>) the average of the range. The formula in cell D7 is =COUNTIF(B5:B25, ">" & AVERAGE(B5:B25)). The AVERAGE function is evaluated first; then the COUNTIF function is evaluated, using the returned value from the nested function as an argument.

      Nested functions are best entered directly. The Insert Function dialog box does not make it easy to enter a nested function. Try one. In this example, you use the AVERAGE function to find the average of the largest values from two sets of numbers. The nested function in this example is MAX. You enter the MAX function twice within the AVERAGE function. Follow these steps:

      1. Enter a few different numbers in one column.

      2. Enter a few different numbers in a different column.

      3. Click an empty cell where you want the result to appear.

      4. Type =AVERAGE( to start the function entry.

      5. Type MAX(.

      6. Click the first cell in the second set of numbers, press the mouse button, and drag over all the cells of the first set.

      The address of this range enters into the MAX function.

      7. Enter a closing parenthesis to end the first MAX function.

      8. Enter a comma (,).

      9. Once again, type MAX(.

      10. Click the first cell in the second set of numbers, press the mouse button, and drag over all the cells of the second set.

      The address of this range enters into the MAX function.

      11. Enter a closing parenthesis to end the second MAX function.

      12. Enter a ).

      This ends the AVERAGE function.

      13. Press Enter.

Figure 1-27 shows the result of your nested function. Cell C14 has this formula: =AVERAGE(MAX(B4:B10),MAX(D4:D10)).

       Figure 1-27: Getting a result from nested functions.

       When you use nested functions, the outer function is preceded with an equal sign (=) if it is the beginning of the formula. Any nested functions are not preceded with an equal sign.

       You can nest functions up to 64 levels.

Chapter 2

      Saving Time with Function Tools

       In This Chapter

      ▶ Displaying the Insert Function dialog box

      ▶ Finding the function you need

      ▶ Using the Function Arguments dialog box

      ▶ Entering formulas and functions

      Excel has so many functions that it’s both a blessing and a curse. You can do many things with Excel functions – if you can remember them all! Even if you remember many function names, memorizing all the arguments the functions can use is a challenge.

       Arguments are pieces of information that functions use to calculate and return a value.

      Never fear: Microsoft hasn’t left you in the dark with figuring out which arguments to use. Excel has a great utility to help you insert functions, and their arguments, into your worksheet. This makes it a snap to find and use the functions you need. You can save both time and headaches, and make fewer errors to boot – so read on!

      Getting Familiar with the Insert Function Dialog Box

The Insert Function dialog box (shown in Figure 2-1) is designed to simplify the task of using functions in your worksheet. The dialog box not only helps you locate the proper function for the task at hand, but also provides information about the arguments that the function takes. If you use the Insert Function dialog box, you don’t have to type functions directly in worksheet cells. Instead, the dialog box guides you through a (mostly) point-and-click procedure – a good thing, because if you’re anything like me, you need all the help you can get.

       Figure 2-1: Use the Insert Function dialog box to easily enter functions in a worksheet.

      In the Insert Function dialog box, you can browse functions by category or scroll the complete alphabetical list. A search feature – you type a phrase in the Search for a Function box, click the Go button, and see what comes up – is helpful. When you highlight a function in the Select a Function box, a brief description of what the function does appears under the list. You can also click the Help on This Function link at the bottom of the dialog box to view more detailed information about the function.

      You can display the Insert Function dialog box in three ways:

      ✔ Click the Insert Function button on the Formulas Ribbon.

      ✔ On the Formula Bar, click the smaller Insert Function button (which looks like f_x).

✔ Click the small arrow to the right of the AutoSum feature on the Formulas Ribbon, and select More Functions (see Figure 2-2). AutoSum has a list of commonly used functions that you can insert with a click. If you select More Functions, the Insert Function dialog box opens.

       Figure 2-2: The AutoSum button offers quick access to basic functions and the Insert Function dialog box.